Imposing 15% CET Fee On Imported Vehicles Is Not Backed By Law – Amiwero

Lucky Amiwero, President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), has petitioned the Federal Government over the Nigeria Customs Service’s imposition of a 15% Common External Tariff (CET) fee on imported vehicles (NCS).

Customs’ 15% CET on imported vehicles, according to Amiwero, is illegal and supported by any law in the country.

The 15 percent CET levy on motor vehicles, according to Amiwero in a letter to President Muhammadu Buhari, is in violation of the Finance Act of 2020 and other domestic laws on import duties and levies.

• See Also: Vehicle Imports: Clearing Agents Plan Strike Action, Want Reassessment Of Tariff Rates

According to him, the only approval for levy for ‘motor vehicles of 8703 Cars is five percent by the National Assembly and signed in to law by the President.’

Many vehicles are now abandoned at the port, accumulating demurrage and rentals, causing a significant bottleneck in revenue collection and hindrance to trade, according to Amiwero, who is demanding for immediate intervention by the President.

The letter reads in part: “We wish to bring to the attention of the Federal government on the imposition of common External Tariff (CET) levy of 15 per cent on Motor vehicles that is not backed by any law or approved in the Finance Act of 2020 and 2021 and not provided in any law of the land and assessed on Motor Vehicles by Nigeria Customs Service (NCS)

“There is no such thing as Common External Tariff (CET) levy of 15 per cent either on Motor vehicles or goods, the only approval is on ECOWAS trade liberalization levy (ETLS) of 0.5 per cent, the introduction of CET LEVY is strange to our domestic law and the ECOWAS convention on Import duties and levies assessment and collection.

“The levy approved in the Finance Act 2020 approved for Motor Vehicles specifically state as follows: Amendment of the first Schedule to the Act is amended by inserting and replacing as the case may be the following duties and levies: Duty on Tractors (Heading 8701) From 35 per cent  to 5 per cent and Duty on Motor Vehicles for the Transportation of more than ten persons (HS Heading 8702) From 35 per cent to 10 per cent,” he said.

• See Also: Innoson Boss Says Duty Reduction On Imported Vehicle Will Put Local Automakers Out Of Business